SAN DIEGO, Aug 05, 2008 (BUSINESS WIRE) -- DexCom, Inc. (Nasdaq:DXCM) today reported its unaudited financial results for the quarter ended June 30, 2008.
Product revenue grew to $1.9 million for the second quarter of 2008, an increase of 125% from the $0.9 million in product revenue reported for the second quarter of 2007, and an increase of approximately 6% from the $1.8 million reported for the first quarter of 2008. Total second quarter 2008 revenue, which included development grant revenue, was $2.0 million, an increase of 130% from the same quarter in 2007, and approximately 6% from the first quarter of 2008. The company reported a net loss of $14.1 million or $0.48 per share for the second quarter of 2008, up from $11.3 million or $0.40 per share for the second quarter of 2007. The net loss for the second quarter of 2008 included $2.8 million in non-cash expenses, centered primarily in share-based compensation.
Cost of sales totaled $3.4 million for the second quarter of 2008, compared to $2.9 million for the second quarter in 2007. The increase was due to additional product sales and development expenses relating to a development agreement entered into during the first quarter of 2008. Research and development expense increased by approximately $0.8 million to $4.8 million for the second quarter of 2008, compared to $4.0 million for the second quarter of 2007. Changes in research and development expense included higher clinical trial, facility, and development costs. Selling, general and administrative expense increased by approximately $1.8 million to $7.2 million for the second quarter of 2008, compared to $5.5 million for the second quarter of 2007, with the change primarily due to additional sales and marketing costs, including increased share-based compensation. As of June 30, 2008, the Company had $43.3 million in cash, marketable securities, and restricted cash.
Conference Call
Management will hold a conference call today starting at 4:30 pm (Eastern Time). The conference call will be concurrently webcast. The link to the webcast will be available on the DexCom, Inc. website at www.dexcom.com under the investor webcast section and will be archived for future reference. To listen to the conference call, please dial (888) 211-7360 (US/Canada) or (913) 312-4373 (International) and use the participant code "5209514" approximately five minutes prior to the start time.
About DexCom, Inc.
DexCom, Inc., headquartered in San Diego, California, is developing and marketing continuous glucose monitoring systems for people with diabetes.
Cautionary Statement Regarding Forward Looking Statements
DexCom is a medical device company with a limited operating history. Successful commercialization and sale of the company's products is subject to numerous risks and uncertainties, including product performance, a lack of acceptance in the marketplace by physicians and patients, the company's inability to manufacture products in commercial quantities at an acceptable cost and quality level, possible delays in the company's development programs, the inability of patients to receive reimbursement from third-party payors and inadequate financial and other resources. Certain of these risks and uncertainties, in addition to other risks, are more fully described in the company's quarterly report on Form 10-Q for the period ending June 30, 2008, as filed with the Securities and Exchange Commission on August 5, 2008.
DexCom, Inc.
Balance Sheets
(In thousands - except per share data)
(Unaudited)
June 30, December 31,
2008 2007
---------- ------------
Assets
Current assets:
Cash and cash equivalents $ 4,963 $ 23,115
Short-term marketable securities,
available-for-sale 32,896 41,208
Accounts receivable, net 568 215
Inventory 2,771 1,139
Prepaid and other current assets 1,757 1,614
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Total current assets 42,955 67,291
Property and equipment, net 6,543 6,649
Restricted cash 5,408 914
Other assets 2,147 2,405
---------- ------------
Total assets $ 57,053 $ 77,259
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Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued liabilities $ 3,736 $ 4,535
Accrued payroll and related expenses 2,431 2,537
Current portion of long-term debt 2,275 1,375
Current portion of deferred revenue 167 --
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Total current liabilities 8,609 8,447
Long-term portion of deferred revenue 254 --
Other liabilities 679 666
Long-term debt, net of current portion 62,219 61,031
---------- ------------
Total liabilities 71,761 70,144
Commitments and contingencies
Stockholders' (deficit) equity:
Preferred stock, $0.001 par value, 5,000
shares authorized; no shares issued and
outstanding at June 30, 2008 and December 31,
2007, respectively -- --
Common stock, $0.001 par value, 100,000
authorized; 29,912 and 29,635 issued and
outstanding at June 30, 2008; 28,778 and
28,624 shares issued and outstanding at
December 31, 2007 30 29
Additional paid-in capital 188,605 183,325
Accumulated other comprehensive income (45) 13
Accumulated deficit (203,298) (176,252)
---------- ------------
Total stockholders' (deficit) equity (14,708) 7,115
---------- ------------
Total liabilities and stockholders' (deficit)
equity $ 57,053 $ 77,259
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DexCom, Inc.
Statements of Operations
(In thousands - except per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- ---------------------
2008 2007 2008 2007
---------- ---------- ---------- ----------
Product revenue $ 1,940 $ 863 $ 3,764 $ 1,875
Development grant revenue 42 -- 80 --
---------- ---------- ---------- ----------
Total revenue 1,982 863 3,844 1,875
Product cost of sales 3,144 2,906 6,256 5,968
Development cost of sales 249 -- 379 --
---------- ---------- ---------- ----------
Total cost of sales 3,393 2,906 6,635 5,968
---------- ---------- ---------- ----------
Gross margin (1,411) (2,043) (2,791) (4,093)
Operating expenses
Research and
development 4,797 4,028 9,640 8,063
Selling, general and
administrative 7,247 5,469 13,668 10,840
---------- ---------- ---------- ----------
Total operating expenses 12,044 9,497 23,308 18,903
Operating loss (13,455) (11,540) (26,099) (22,996)
Interest income 307 1,126 872 1,918
Interest expense (926) (922) (1,819) (1,187)
---------- ---------- ---------- ----------
Net loss ($14,074) ($11,336) ($27,046) ($22,265)
========== ========== ========== ==========
Basic and diluted net loss
per share ($0.48) ($0.40) ($0.92) ($0.79)
========== ========== ========== ==========
Shares used to compute
basic and diluted net
loss per share 29,387 28,299 29,308 28,261
========== ========== ========== ==========
SOURCE: DexCom, Inc.
DexCom, Inc. Jess Roper, Vice President and Chief Financial Officer 858-200-0200 www.dexcom.com
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